West Texas Intermediate fell 3.58 percent, while world benchmark Brent slipped 3.2 percent.
Oil fell along with stocks as China’s strict measures to curb Covid-19 threatened a further blow to economic activity and fuel demand.
West Texas Intermediate futures fell 3.4% as data showing a sharp economic contraction in the world’s top oil importer outpaced growing expectations that Europe might agree to curb crude purchases from Russia. Beijing will close gyms and movie theaters during the labor holiday that lasts until Wednesday, and Shanghai will maintain anti-virus measures.
- WTI for June delivery was trading down $3.58 at $101.11 a barrel on the New York Mercantile Exchange at 8:41 am local time.
- Brent for July settlement fell 3.2% to $103.73 on the ICE Futures Europe exchange.
“Concerns about China’s growth are a key factor, adding to the general risk-off sentiment and signs that high fuel prices are already causing demand destruction,” said Ole Sloth Hansen, head of Saxo Bank A/S commodity research.
Meanwhile, the European Union is set to propose a ban on Russian imports by the end of the year, with restrictions on shipments phased in until then. While Germany said it could end its dependence on Russia by the summer, Hungary said it would veto any sanctions on Russian energy.
Oil rose for a fifth month in April, marking the longest monthly winning streak since January 2018. Russia’s invasion of Ukraine has spurred inflation and prompted the US and its allies last month to agree to a coordinated release of reserves. strategic crude to ease the energy surge. prices. The war has also caused a spike in US diesel prices.
Crude oil remains in a bullish retrospective pattern with short-term prices above longer-term ones, although spreads have narrowed since early March. Brent’s flash spread, the gap between its two closest contracts, was $1.60 a barrel, down from $3.88 on March 8.
- The Iraqi military said several rockets targeted the Kar Company refinery in Kurdistan on Sunday night. While the attack sparked a fire at one of the facility’s main oil storage sites, it was later brought under control.
- OPEC+ is likely to ratify another modest output increase when the group meets this week, and shipments will continue to flow from Moscow.
- Saudi Arabia’s economy grew at the fastest pace in more than a decade in the first quarter, largely thanks to booming oil prices and rising output.
- Proposed EU sanctions have not made it clear what ‘Russian oil’ really is, writes Julian Lee.